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Informist, Tuesday, Mar. 25, 2025

 

By Pallavi Singhal

 

NEW DELHI – The government is mulling an 11% import duty on chana, comprising 5?sic customs duty, 5% agriculture infrastructure and development cess, and 1% social welfare cess, according to a senior government official. This proposal, recommended by the Ministry of Consumer Affairs, will be finalised at an inter-ministerial committee meeting on Wednesday.

 

It was in May 2024 when the duty exemption for import of chana, along with tur, urad, and masur, was extended to Mar. 31. Meanwhile, the government also extended free imports of yellow peas -- a cheaper substitute for chana -- till May 31. Imports of tur and urad already continue to be duty-free till Mar. 31, 2026, while the government levied an import duty of 11% on masur.

 

"It will not make sense for the government to halt imports of chana when imports of yellow pea, its substitute, continue. However, we are looking to put up a small duty so the prices do not go below the minimum support prices," the official explained. 

 

Prices of chana have already dipped below or are nearing the minimum support price of INR 5,650 per 100 kg due to rising arrivals of the rabi crop across major spot markets. Prices have also been under the pressure of high imports. Chana imports in Apr-Dec stood at 360,393 tonnes, up a whopping 177% on year, according to data from the ministry.

 

Meanwhile, chana production is looking up, with the agriculture ministry's second advance estimates putting output in 2024-25 at 11.5 million tonnes, up from 11 million tonnes last year.

 

With chana imports unlikely before September, due to key suppliers like Australia and Tanzania planting their crops between April-May, maintaining open imports is crucial. The government aims to build a sizable 2.7 million tonne chana buffer. According to agricultural economist Deepak Preek, "Leaving imports open, even with a small duty, will incentivise countries like Australia to cultivate chana, while also boosting domestic market sentiment, where prices have fallen below the MSP." 

 

The extension, despite the duty, is likely to help government keep prices of the commodity low and replenish its reserves, which saw a sharp decline over the last two years as prices of all pulses stayed well above minimum support prices due to lower production.  End

 

Edited by Deepshikha Bhardwaj

 

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